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  • Writer's pictureLori N. McCausland

So you want to start up an SBA Department? Read this first!

Here are five things every Lender should consider before launching an SBA 7a product line.

  1. Staffing Many Lenders focus first on the sales team. After all, sales comes first -- right? Not so fast! What about underwriting, processing, documenting, funding and servicing the SBA loans that your sales team sells? Once the SBA 7a deals start coming in, you'll need ot have staff prepped and ready to make sure your borrower is set up for success and your guaranty remains intact.

  2. Core Systems SBA loans have specific requirements for boarding onto your system. Before you start bringing deals in, make sure your core system can handle those requirements.

  3. Processes and procedures Don't try to build the process as you go! Lenders who build their end-to-end SBA loan pipeline processes up front are much more successful. At the very least, develop a chart that includes all the steps in the process; that will set you up to fill in the details.

  4. Staff Experience You'll want to ensure your technical systems -- from the core processing system, to underwriting systems, documentation systems, tickler systems, reporting and accounting systems, and more -- have the ability to successfully service SBA loans. How? Include employees with technical experience in using those systems in your planning stages!

  5. Band-aids and workarounds Avoid band-aids in your processes at all costs! They cause bottlenecks, create errors, and are likely to affect the accuracy of your monthly SBA loan reporting.

Here at LRM Lender Consultants, we have years of hands-on experience in establishing profitable and efficient, smooth-running SBA departments. We are always ready, available, and happy to answer your questions.


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